The break-even level of revenues represents the point at which the firm has:
A)Zero pretax profit.
B)Zero net present value.
C)Covered all opportunity costs.
D)Covered all fixed and variable costs.

Question

Quizplus · Accepted Answer

At the break-even level of revenues, a firm has zero pretax profit because it has covered all its fixed and variable costs, but has not yet made any profit.

The Break-Even Level of Revenues Represents the Point at Which